Your Money, Your Wealth Could You Retire Tomorrow If You Had To? - 573
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Mar 17, 2026 Real-life retirement math for couples and singles with seven-figure nests. Practical talk on Roth conversions, RMD timing, pensions and annuities. Strategies for early retirement, walking away from a job, and handling divorce or widow risks. Actionable scenarios for spending capacity and tax-smart distribution planning.
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Ruben The Traveler With $1.6M And No Budget
- Ruben is a 68-year-old Wyoming retiree with $1.6M, mostly in taxable and pre-2020 inherited IRA assets, $100k Roth and modest pension/Social Security income.
- He traveled extensively, returned from Thailand with more money than he started, and admits he's never kept a formal budget.
Use A Practical Withdrawal Rate For Spending
- Do plan withdrawals around a sustainable distribution rate; Big Al suggests a 4% withdrawal from $1.6M producing ~$64,000 plus ~$25,000 Social Security for ~$89,000 total income.
- Use that combined income to set spending and avoid unnecessary QCDs since Ruben likely needs the cash himself.
Convert To Your Tax Bracket And Take RMDs First
- Do convert pre-tax balances up to your current bracket limit; Joe and Big Al recommend converting into the 22% bracket for Leslie and Ben to use low tax rates before bigger RMDs start.
- Take RMDs first then conversions so you don't create excess taxable income accidentally.